Can I Add Personal Accident Cover Later if I Forgot it During Purchase?

Insurance providers allow you to add a Personal Accident (PA) cover to car insurance that financially protects you if you meet an accident with your insured car. In India, it is mandatory to sign up for a ₹15 lakh Personal Accident (PA) if you have any motor vehicle. You can buy this cover when buying a car insurance policy. Read the detailed information below to learn about PA coverage in car insurance.

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How Does a Personal Accident (PA) Cover Work?

If a road accident results in death or disability of the owner-driver, Personal Accident (PA) coverage offers monetary compensation. As required by IRDAI, the policy provides a fixed lump sum payment of up to ₹15 lakh in the event of an unintentional death, permanent total disability, or partial disability due to a car accident.

What to Do if You Missed Adding a PA Cover When Buying Your Car Insurance Policy?

If you missed adding Personal Accident (PA) cover when buying your car insurance policy and want to add it now, you must:

• Contact your insurance provider and inform them of your intent to sign up for Personal Accident (PA) coverage.
• Follow their instructions to get your Personal Accident (PA) cover as a standalone add-on or as an endorsement for your existing policy.

Can I Buy a Personal Accident (PA) Cover as a Standalone Add-on?

Yes. You can buy a Personal Accident (PA) cover as a standalone add-on, as IRDAI separated the Compulsory Personal Accident insurance from car insurance plans in 2019.

This allows policyholders to buy a new vehicle without needing to buy a new Personal Accident cover if they already have one with the previous vehicle.

How to Buy a Personal Accident Cover if You Forgot to Add it While Buying Your Car Insurance Policy?

Here is how you can buy PA cover in case you forget to add it to car insurance online:

1. Contact your Insurance Provider

   Inform your insurance provider of your intent to buy a Personal Accident (PA) cover for your existing car insurance policy. Follow the instructions given by them.

2. Submit Required Documents

   Provide necessary details like your existing policy number, a copy of your driving licence, and proof of identity.

3. Pay the PA Cover Premium

   Policyholders must pay the premium, which is usually under ₹500 per year for a ₹15 lakh PA cover. The premium amount may vary slightly depending on the insurance provider.

4. Get the Endorsement or Standalone Policy Document

   After payment, the insurer will issue either a revised policy endorsement or a separate PA policy document.

Is a Personal Accident (PA) Cover Linked to the Vehicle or to the Owner?

A Personal Accident (PA) cover is linked to the vehicle owner, as it offers financial protection to the owner-driver in case of an accidental injury or death caused while driving the insured car.

Why is Personal Accident (PA) Cover Mandatory under Indian Motor Laws?

As per the Indian Motor Vehicles Act, 1988, car owners must have at least a third-party liability insurance policy. A third-party liability insurance policy will offer financial assistance to the third party for injuries or damages caused by the insured car. However, this policy does not offer any coverage for the owner-driver of the insured car.

To bridge this gap and relieve the insured car's owner-driver, IRDAI has made Personal Accident coverage a mandatory requirement for car insurance. With this cover, the owner-driver's family can get financial relief in the unfortunate event of permanent/partial disability or death of the owner-driver.

PA Cover - Inclusions and Exclusions

Here's all you need to know about what is included and what is not under PA cover.

Types of Personal Accident (PA) in Car Insurance

Insurance providers offer different Personal Accident (PA) coverage options. Here are some PA covers offered in India:

• Owner-Driver Cover - This is a mandatory cover offering ₹15 lakh compensation in case the registered owner-driver dies or suffers a permanent disability in a road accident while driving the insured car.
• Passenger Cover - An optional add-on that covers passengers in the insured vehicle in the event of an unintentional injury or death.
• Paid Driver Cover - This add-on guarantees compensation to the hired driver of the insured car in the event of their unfortunate death or serious injury.
• Unnamed Passenger Cover - Any unnamed passengers in the vehicle at the time of an accident are eligible for compensation under this coverage.

Benefits of a Personal Accident (PA) Cover

In the event of an accident, Personal Accident (PA) coverage provides the owner-driver with financial security. Here are some benefits of a PA cover:

• Compensation in the Event of Death- According to IRDAI regulations, the nominee is entitled to a lump sum payment of ₹15 lakh in the event that the owner-driver dies in an automobile accident.
• Compensation for Permanent Total Disability- The insured gets the full PA amount in the event of permanent injuries such as loss of limbs, blindness, etc.
• Compensation for Permanent Partial Disability- For partial disabilities like losing a hand, leg, or eyesight in one eye, the policyholder is paid a proportionate amount of the total coverage.
• Covers More Than Just Hospital Bills- A PA cover pays a fixed benefit regardless of the actual treatment costs or hospitalisation and can be used for buying mobility aids, home care, or travel to medical facilities.
• Low Premium, High Value- A PA cover is one of the most affordable components of car insurance, often available at under ₹500 per year.
• Nationwide and Global Validity- Most PA covers remain valid even if the accident happens outside your home city or abroad.

How to File a Personal Accident (PA) Claim in Car Insurance

Follow the steps mentioned below to file a PA claim.

1. Report the incident - Inform the authorities immediately after the accident.
2. Inform your insurer - Notify your car insurance company about the accident.
3. File an FIR - Register a First Information Report at the nearest police station.
4. Submit necessary documents - Provide all required documents to the insurer.
5. Claim Approval - The insurer will verify the documents, and after successful verification, will approve your claim request.